Ace the PTBC California Law Exam 2025 – Unlock Your PT Future with Fun Prep!

Question: 1 / 400

What must PT corporation regulations include regarding stock?

Regulations must forbid the sale of stock

Stock must be sold to a disqualified person within a specified time

Stock owned by a disqualified or deceased person must be sold to the corp or remaining shareholders as allowed

PT corporation regulations must include provisions that address the transfer of stock owned by a disqualified or deceased person. Option A is incorrect because regulations do not necessarily have to forbid the sale of stock, but can instead outline the condition in which stock can be sold. Option B is incorrect because it only mentions the sale of stock to disqualified persons, but regulations should also address the sale of stock owned by deceased persons. Option D is incorrect because not all stock has to be publicly traded, as it depends on the company's decision and the type of stock offered. Therefore, option C is the best answer as it covers all necessary provisions for the transfer of stock.

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All stock must be publicly traded

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